The involvement of Cadbury Schweppes in the international market has proved to be successful. From being an unsuccessful small-scale company in the 1970s, it has established a foothold in the global market ranking third in the soft drink business and topping the non-cola producers. This resulted from the company's successful two-fold penetration of the American market. First, large companies have been given licenses to produce its products and to license them to bottlers and distributors. Through this, the company was able to introduce its products to the market at a minimal cost and risk. However, this practice may bring in a potential threat. Coca-Cola, for example as a licensee in the American market, having seen that Cadbury Schweppes' products are fit to the changing lifestyle of the population, may copy the manufacturing process and alter some of them to stay away from patent-related infringement and thus, creating a new product which would closely rival the licensed product.

English: A Cadbury Time Out split in half.

Cadbury's Eclairs

Cadbury's Factory - directions to Cadbury World an...

Thus, Cadbury must take in preventive measures to secure and prevent the latter forecast from happening.

Another mode of entry of the company in the international market is its series of acquisitions of companies such as A&W Brand and Canada Dry. Through this, the company was able to instantly acquire a foothold in the market. Its recent acquisition of Dr. Pepper/7UP attests that the company is taking serious steps to acquire a larger share of the pie. This move presents mutual benefits to the acquired and acquiring company. In the case of Dr. Pepper, with its merger with Cadbury Schweppes, it can now exploit the international distribution system of Cadbury and as a result, its longed international expansion has been remedied.

Corporate-level Strategies

Unlike any other soft drink business, Dr. Pepper/7 Up fully licensed the bottling...

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... Coca-Cola and PepsiCo dominate the soft drinks market worldwide. In the UK, Coca-Cola took full control of its distribution company in 1997. (Ironically, Coca-Cola's move left its former partner, Cadbury Schweppes, to become a major force in US soft drinks). The local distributor for PepsiCo ...

22 pages698Oct/20023.5

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